The difference between retiring with a portfolio that yields $15,000 a year and being low income and earning $15,000 a year is that the one with the portfolio has more to lose if something goes wrong. And if you have to dip into your portfolio too much to meet an emergency then it might not yield $15,000 a year anymore.

You should know what state you live in to know what is exempt from creditors if things go wrong. Does your state have a small homestead exemption or large? Does you state exempt IRAs or limit the exemption? It would be good for you to know when evaluating risk.

We know a guy who got laid off from a university teaching position when he was about 40. Now he is in his early sixties. He has lived for more than 20 years, on less than $10,000 a year. He works handiman jobs. He grows his own food. Sometimes has a car, sometimes doesn't. Is very healthy and has no insurance. Last summer he took a 2000 mile canoe trip with his dog from Wisconsin to Montana, most of it UP the Missouri river. Amazing guy.

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Having lived on both sides of the 15k number - the North side is better. We were in the LA swamp in a paid up fish and I carried no health insurance(not recommended).

Post Katrina - restarting from scratch with a mortgage in the burbs - ? best guess - maybe 30 - 40k living pretty high on the hog. Don't know how to expense rebuying everything from scratch( capitalize over expected life).

Anywise - having an emergency reserve of 40k was extremely beneficial - to put it mildy.

Yes - you can do it on 15k - but working the nuts and bolts of expenses - and what you are invested in - makes all the difference.

Post Katrina - restarting from scratch with a mortgage in the burbs - ? best guess - maybe 30 - 40k living pretty high on the hog. Don't know how to expense rebuying everything from scratch( capitalize over expected life).

Excuse the dumb question: They give a mortage to a person without a job? How does that work?

__________________
Sometimes death is not as tragic as not knowing how to live. This man knew how to live--and how to make others glad they were living. - Jack Benny at Nat King Cole's funeral

I have no job and thus no earned income. Yet, because I have
an above average net worth, good credit and no debt
(other than reinvested CC money). people want to shower me with
$. It would be interesting to see how much I could borrow.
I suspect it would be almost unlimited if I wanted to work at it.

Well, I wouldn't be working with ONE lender. Here is the deal.
I am in the best financial shape of my life and I was always able to borrow all the money I wanted, whenever I wanted it. Don't see any reason that it would be any different now.

Excuse the dumb question: They give a mortage to a person without a job?* How does that work?

The lender exhaustively analyzes your pension & future SS income, goes over your retirement portfolio with a fine-toothed comb to verify it'll survive repaying the mortgage, checks your medical history under a microscope to ensure you'd be able to return to the workforce if necessary to avoid declaring bankruptcy, and estimates your remaining lifespan to ensure you don't die before payoff. The mortgage company figures they can take your fees as their income, repackage your loan with a bunch of other subprime mortgages, and sell the whole mess to pension funds & CDO investors.

The mortgage companies earn a penny off each transaction but they do a million of them a day.

The weasels executives who developed this plan will all cash in their options and be working at other firms before the mortgage company goes bankrupt.

__________________*
*The book written on E-R.org, "The Military Guide to Financial Independence and Retirement", on sale now! For more info see "About Me" in my profile.
I don't spend much time here anymore, so please send me a PM. Thanks.

We know a guy who got laid off from a university teaching position when he was about 40.* Now he is in his early sixties.* He has lived for more than 20 years, on less than $10,000 a year.* He works handiman jobs.* He grows his own food. Sometimes has a car, sometimes doesn't.* Is very healthy and has no insurance.* Last summer he took a 2000 mile canoe trip with his dog* from Wisconsin to Montana, most of it UP the Missouri river.* Amazing guy.*

Inspirational. Only shows that too many time our foucs is misdirected, only toward the financial, the paying part, and not on the actual living part.
I canoe, and prefer to go downstream. But what a neat trip, Wisconsin to Montana, upstream.
If you are ready to take that trip, take it. There will be plenty of time to get back into the workforce or find other ways to make some income if you need to.
Uncledrz

Inspirational.* Only shows that too many time our foucs is misdirected, only toward the financial, the paying part, and not on the actual living part.*
I canoe, and prefer to go downstream.* But what a neat trip, Wisconsin to Montana, upstream.
If you are ready to take that trip, take it.* There will be plenty of time to get back into the workforce or find other ways to make some income if you need to.
Uncledrz

I'm ready, but I would have to go downstream and stay in motels.

Martha's acquantance is a good example of "Possum Living" which I have posted about before (inspired by BlackHillsBob). We are a long way from that but could wind down to it. Sometimes I'm not so sure we should
not have already. In a prescient moment, maybe 30 years ago, I told my former wife that if we ever did split up I would probably adopt a subsistance
lifestyle. Never did it, but I still think about it a lot.

The lender exhaustively analyzes your pension & future SS income, goes over your retirement portfolio with a fine-toothed comb to verify it'll survive repaying the mortgage, checks your medical history under a microscope to ensure you'd be able to return to the workforce if necessary to avoid declaring bankruptcy, and estimates your remaining lifespan to ensure you don't die before payoff.* The mortgage company figures they can take your fees as their income, repackage your loan with a bunch of other subprime mortgages, and sell the whole mess to pension funds & CDO investors.*

The mortgage companies earn a penny off each transaction but they do a million of them a day.

The weasels executives who developed this plan will all cash in their options and be working at other firms before the mortgage company goes bankrupt.*

Hey Nords! This "plan" is brilliant. It's capitalism man............ the engine that
powers the economy (for now anyway). Did you get hit on the head
by your surfboard?

A few more things about our "possum living" acquaintance. He is very self reliant BUT he is also dependant on others. My husband's brother drove out to Montana in his suburban to pick him up after his canoe trip. Once he drove down from Wisconsin to Florida is his latest beater to visit his mom. He slept in the car and brought his own food. But in Florida, he stayed with my FIL. My FIL was invited out to dinner with the guy and his mom. My FIL ended up picking up the check for everyone. The trip cost him gas money, that was it.

And those figures are only over the last 12 months.
How about the expenses that come up every few years that are not included.
Eyeglasses, dental work, replacement costs etc.

I do not doubt someone can live on minimal #'s but I do not think many around here do.

My son lived in a van for quite some time. He parked it in friend's
driveways and they let him use the shower, etc. He is very
handy and creative, and would work just enough for
"walking around money". Eyeglasses, dental and etc
were all deferred until he went back to a "real job". He went
for years and years with no visible means of support.
(I wasn't helping him) Now, he works for the federal
government..................Argggggggghhhhhhhhhh.. ..........

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